EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT: Alanco Investor Relations
(480) 607-1010
www.alanco.com
Alanco Fiscal Year 2007 Results
and
Preliminary FY 2008 First Quarter Sales
(Scottsdale, AZ - October 1, 2007) - Alanco Technologies, Inc. (NASDAQ: ALAN)
today announced the Company's financial results for fiscal year ended June 30,
2007, and preliminary FY 2008 first quarter sales.
Fiscal Year 2007 Results
Revenues for the fiscal year ended June 30, 2007 increased 239% to $18,474,100,
compared to $5,444,500 for the fiscal year ended June 30, 2006. EBITDA (loss
before interest, taxes, depreciation and amortization) for the year increased
slightly to a loss of ($4,152,400) compared to a loss of ($4,121,600) for the
prior fiscal year. Net loss attributable to common stockholders (including
preferred stock dividends in-kind) for fiscal year ended June 30, 2007 was
($5,871,700), or ($0.34) per share, compared to the net loss incurred in the
prior fiscal year of ($4,591,900), or ($.39) per share. The dramatic revenue
increase resulted primarily from contributions from recently acquired StarTrak
Systems, LLC, the leading provider of wireless tracking and monitoring services
to the refrigerated transport industry, and now the Company's largest
subsidiary. See the Consolidated Financial Information table below for
additional financial information.
Preliminary First Quarter FY 2008 Sales
First quarter sales revenue increased significantly from FY 2007's final
quarter, as technical and production issues related to StarTrak's Sentry product
line roll-out were resolved, with StarTrak sales rebounding to plus $3,000,000.
Total Company sales revenues, with additional improvement contribution from TSI
PRISM and Excel/Meridian, will be in the range of $4,500,000 to $5,000,000.
Robert R. Kauffman, Alanco Chairman & CEO, commented on fiscal year 2007 results
and this year's outlook as follows:
Fiscal Year 2007 Results
"Results for the first nine months of fiscal year 2007 were gratifying with
sales revenues tripling and EBITDA loss narrowed by 40%, due primarily to
contribution of StarTrak Systems. However, engineering and production-related
delays in StarTrak's roll-out of their new lower cost cellular Sentry product
line resulted in disappointing fourth quarter results. In the final quarter,
despite record data service revenues of approximately $1,500,000, unavailability
of Sentry product resulted in StarTrak total revenues falling to $2,270,000 from
the third quarter's $3,400,000, contributing, along with reduced gross margins,
to a significant operating loss for the final period. The Company, however, is
confident that all Sentry product line issues have been resolved and pending
sales will be completed as product becomes available."
"StarTrak's initial fiscal year as an Alanco subsidiary was a resounding
success. Sales revenue more than doubled to approximately $13,000,000 and EBITDA
loss was reduced from approximately ($3,000,000) to ($77,000). Reefer monitoring
units in service also doubled to over 20,000 units, providing a large and
rapidly growing base of highly profitable monthly data service revenues. During
the year StarTrak significantly expanded and improved its organization,
technical resources, intellectual property, data services network and
proprietary product lines, and is poised for substantial additional growth in
fiscal year 2008."
Fiscal Year 2008 Outlook
"Beyond our improved first quarter results, we expect significant StarTrak
revenue growth beginning in the second quarter as all Sentry product roll-out
problem areas have been resolved and major new contracts are in final
procurement stages."
"TSI PRISM is projected to substantially narrow its operating losses for the
full year due to several new contracts expected to be awarded during the second
quarter."
"Excel/Meridian, with a newly-appointed President already implementing a more
aggressive marketing and sales strategy, is projected to resume sales growth and
return to profitable operations."
"Finally, we continue to forecast achieving positive monthly cash flow during
the second half of the present fiscal year ending June 30, 2008."
Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in Scottsdale, Arizona,
is a rapidly growing provider of wireless tracking and asset management
solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries.
Corporate website: www.alanco.com
StarTrak Systems is a leading provider of GPS tracking and wireless asset
management services to the transportation industry and the dominant provider of
tracking, monitoring and control services to the refrigerated or "Reefer"
segment of the transportation marketplace. StarTrak products increase efficiency
and reduce costs of the refrigerated supply chain through the wireless
monitoring and control of critical Reefer data, including GPS location, cargo
temperatures and Reefer fuel levels. StarTrak offers complete integrated
solutions for refrigerated trailers, trucks, railcars, and containers.
Additional information is available at www.StarTrak.com.
Alanco/TSI PRISM is the leading provider of RFID real-time tracking technologies
for the corrections industry. TSI PRISM systems track and record the location
and movement of inmates and officers, resulting in enhanced facility safety and
security and significant staff productivity improvements. Utilizing proprietary
RFID (Radio Frequency Identification) tracking technology, TSI PRISM provides
real-time inmate and officer identification, location and tracking both indoors
and out, and is currently utilized in prisons in Michigan, California, Illinois,
Ohio, Missouri, Virginia, and Indiana. Additional information is available at
www.TSIPRISM.com.
The Company also participates in the data storage industry through its wholly
owned subsidiary, Excel/Meridian Data, Inc., a manufacturer of high-quality Data
Storage solutions encompassing Network Attached Storage (NAS), Direct Attached
Storage (DAS) and Storage Area Network (SAN) systems. Excel delivers uniquely
scalable, manageable and cost-effective storage solutions for all network
storage customers. For further information, visit www.emdstorage.com.
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE,
BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT;
COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW
TECHNOLOGIES WHICH MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES;
FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY
TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND TO REMAIN IN COMPLIANCE
WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING
AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND
RELATIONSHIPS.
(table follows)
Alanco Technologies, Inc.
Condensed Consolidated Financial Information
Year ended June 30,
2007 2006
----------- -----------
NET SALES $ 18,474,100 $ 5,444,500
=========== ===========
LOSS FROM CONTINUING OPERATIONS $ (5,115,600) $ (4,085,100)
Income (loss) from discontinued operations (83,200) 75,900
Preferred stock dividends - in kind (672,900) (582,700)
----------- -----------
LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (5,871,700) $ (4,591,900)
=========== ===========
NET LOSS PER SHARE - BASIC AND DILUTED
Attributable to Common Shareholders $ (0.34) $ (0.39)
=========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 17,286,500 11,642,000
=========== ===========
EBITDA Reconciliation for the Twelve Months
Ended 6-30-07
EBITDA $ (4,152,400) $ (4,121,600)
Net interest expense (759,800) (90,300)
Depreciation and Amortization (959,500) (380,000)
----------- -----------
LOSS FROM CONTINUING OPERATIONS $ (5,871,700) $ (4,591,900)
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